In this study, we use a time domain numerical model based on the fully nonl
inear extended Boussinesq equations [Wei et al., 1995] to investigate surfa
ce wave transformation and breaking-induced nearshore circulation. The ener
gy dissipation due to wave breaking is modeled by introducing an eddy visco
sity term into the momentum equations, with the viscosity strongly localize
d on the front face of the breaking waves. Wave run-up on the beach is simu
lated using a moving shoreline technique. We employ quasi fourth-order fini
te difference schemes to solve the governing equations. Satisfactory agreem
ent is found between the numerical results and the laboratory measurements
of Haller et al. [1997], including wave height, mean water level, and longs
hore and cross-shore velocity components. The model results reveal the temp
oral and spatial variability of the wave-induced nearshore circulation, and
the instability of the rip current in agreement with the physical experime
nt. Insights into the vorticity associated with the rip current and wave di
ffraction by underlying vortices are obtained.